Functionally terminated liquid polymers, also referred to herein as telechelic liquid polyethers, are well known commercially. In particular, telechelic epihalohydrin liquid polymers are currently being used as a toughening additive for reinforced unsaturated polyesters and thermoset polyesters, as a component of polyurethanes, as a component of non-solvent adhesives, as an impermeable and weatherable coating, and as an energetic binder in rocket fuels.
U.S. Pat. Nos. 3,850,856 and 3,850,857 describe the preparation of hydroxyl-terminated polymers of epihalohydrins by cationic polymerization thereof in the presence of water or ethylene glycol employing, as a polymerization catalyst or initiator, a trialkyl oxonium salt of an HMF.sub.6 acid, wherein M is a Group V element selected from the group consisting of phosphorus, arsenic and antimony. However, the liquid polymer prepared is normally of a yellow to dark brown color. The presence of color in the product is undesirable for certain applications where the color of the finished product is important.